A Nidhi company is mutual benefit company formed with the objects of: – Cultivating the habit of thrift and savings amongst its members – Receiving deposits from, and lending to, its members only, for their mutual benefit. Since Nidhi Company is receiving deposits from, and lending to, its members only, for their mutual benefit, it isn’t required to receive the license from Reserve Bank of India or get money lending licence from state government. Need not get license from Reserve Bank of India Need not get money lending licence from state government. Nidhi Company can’t carry on chit funds, hire-purchase finance, leasing finance, insurance or securities business. Nidhi Companies are not permitted to do microfinance business in India. It is strictly prohibited from accepting deposits from or lending funds to, any other person except members. It can’t advertise itself to ask for any deposits. – Nidhi Company Registration Kochi
01. Lending money to its members as –
i. Gold Loan
ii. Loan against fixed / immovable Property
iii. Loan against Fixed Deposit and Other Cash Deposits
iv. Loan Against National Savings Certificates (NSC) or Government Bonds
02. Rental income by providing locker facilities to its members
03. Penal charges on default in loan repayment.
Seven or more persons come together to form Nidhi Company
Coin/formulate the Nidhi Company Name – Eg: Alpha Nidhi Ltd. Plse. note that name proposed shall not same or similar to the name of existing company or LLP. You cancheck herename availability for the proposed Nidhi Company Plse. also note that that name proposed shall not same or similar to a already registered trademark or is subject matter of an application pending for registration under the Trade Marks Act. You cancheck herewhether the proposed name is based on a trademark registered or is subject matter of an application pending for registration under the Trade Marks Act.
Apply to Ministry of Corporate Affairs for getting name for the proposed Nidhi Company
Plse. get Digital Signature for promoters.
Select a minimum of three among the promoters as the directors of the proposed Nidhi Company.
Prepare Memorandum of Association ( MoA) & Articles of Association( AoA)
Submit application for the registration of the Nidhi Company along with the required documents and prescribed government fees.
The following documents of all the promoters are required:
01. Copy of PAN Card of all the promoters
02. A document for Proof of identity of all the promoters – Voters Identity Card or Passport or Driving License + copy of Aadhaar Card.
03. A document as residential proof of all the promoters – Bank Statement or Electricity Bill or Telephone bill or Mobile bill ( not older than two months)
04. Proof of address of registered office of Nidhi Company – Copy of Rent agreement (If rented property) and Telephone Bill /Electricity/ Water bill/Gas bill (Business Place) ( not older than two months) + NOC from building owner .
05. Passport size photograph of all the promoters.
Note: In case of NRI or Foreign National, documents of director (s) must be notarized or apostilled. Foreign nationals need not have PAN; but they must provide a valid passport.
You can check here the government fees and stamp duty applicable for Nidhi Company registration.
A Nidhi company to be incorporated under this Act shall be a Public Company;
There should be a minimum of seven shareholders
There should be a minimum of three directors
It shall have a minimum paid up equity share capital of Rs. 5,00,000/-;
No preference shares shall be issued
The object of the company shall be cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only for their mutual benefits;
It shall have the words ‘Nidhi Limited’ as part of its name;
Every Nidhi shall, within a period of one year from registration ensure that it has—
a) Minimum number of members should be 200;
b) Net owned funds shall be Rs.10,00,000/- or more (‘Net owned funds’ means the aggregate of paid up equity share capital and free reserved as reduced by the accumulated and intangible assets appearing in the last audited balance sheet);
c ) Ratio of net owned funds to deposit shall be not more than 1:20 and
d) Unencumbered term deposits of not less than 10% of the outstanding – Nidhi Company Registration Kochi
NIDHI COMPANY REGISTRATION
Alappuzha, Ernakulam, Idukki, Kannur, Kasaragode, Kollam, Kottayam, Kozhikode, Malappuram, Palakkad, Pathanamthitta, Thrissur, Wayanad, Trivandrum